A and B invested Rs. 15000 and Rs.20,000 respectively in a business. How…
2023
A and B invested Rs. 15000 and Rs.20,000 respectively in a business. How should a loss of Rs.2800 be divided between them at the end of year? (in rupees)
- A.
1500 , 1300
- B.
1600, 1200
- C.
1300, 1500
- D.
1200, 1600
Show answer & explanation
Correct answer: D
Concept: When two or more partners invest capital for the same time period, any profit or loss is shared strictly in the ratio of their capital invested, since profit/loss is proportional to the capital invested when the duration is identical.
Investment ratio of A to B = 15000 : 20000 = 3 : 4 (dividing both by their HCF, 5000).
Total number of ratio parts = 3 + 4 = 7.
A's share of the loss = (3/7) x 2800 = Rs. 1200.
B's share of the loss = (4/7) x 2800 = Rs. 1600.
Cross-check: 1200 + 1600 = 2800, matching the total loss, and 1200 : 1600 reduces to 3 : 4, the same as the investment ratio -- confirming the split is correct.
